TPL REIT Fund I, managed by TPL REIT Management Company Limited (TPL RMC), has achieved its First Financial Close with disbursements over Rs. 5.6 billion from eight of Pakistan’s leading commercial banks.
According to the stock filing, this accounts for 50 percent of the total Fresh Raise as part of the first tranche, as the fund satisfied all its condition precedents for disbursement. The other half of the fresh equity raise will be disbursed in two more tranches based on specific milestones that were agreed upon with the Anchor Investors.
Under testing economic conditions, TPL REIT Fund 1 achieves financial close as 8 banks disburse PKR 5.625B with total commitments of 11.25B. This is Pakistan’s largest equity transaction. Next Capital is exclusive advisor to TPL RMC. Congratulations to Ali Jameel and Ali Asgher. pic.twitter.com/1EwocohF5x
— Najam Ali (@NajamAli2020) June 27, 2022
Out of the total Initial fund size amounting to Rs. 18.35 billion, TPL Properties Limited (TPLP), the strategic investor in the fund, contributes Rs. 7.1 billion of land value to the fund in the form of Investment Property (Initial Asset Portfolio), while the remaining Rs. 11.25 billion (Fresh Raise) is a fresh equity raise by the largest banks in Pakistan (Anchor Investors), of which TPL REIT has received disbursements worth Rs. 5.625 billion.
The initial funds that TPL REIT received will be deployed in financing the development costs of the Initial Asset Portfolio, which includes the first Technology Park in Pakistan, the first sustainable integrated master plan community (Mangrove), and a residential asset (One Hoshang).
TPL RMC is the leading provider of REIT management services in Pakistan. It is a 100 percent owned subsidiary of TPLP that was established to capitalize on the Real Estate development and management expertise of its parent company through launching Sustainable Development Impact REIT Funds across diverse real estate asset classes in Pakistan.